Start the journey to success

THE BRAND

CARAMELLO’S CORE CULTURES

Caramello's was established in 2002 with the name

being derived from the Greek word “Caramella” which

means sweet treat.

Caramello’s is an established brand in Central South

Africa and aims to cater for the sophisticated markets

confectionery, bakery & coffee shop needs.

Stores locations are best suited in high traffic shopping

complexes. Our store model requires between 150m²

and 200m² combined retail space.

We have gained great interest for our brand nationally

and even internationally through our strong

foundation in the well established and profitable stores.

Our unique stores strive to give an unparallel customer

experience by ensuring that our PEOPLE, PRODUCT &

EQUIPMENT are of a superior nature whilst keeping

QAULITY, SERVICE and CLEANLINESS at the highest

levels.

We believe in open communication between ourselves

and our patrons and understand without them we have

no business.

Despite the current growth within the group, service &

customer satisfaction will always remain at the core of

everything we do.

THE FRANCHISOR'S PERSPECTIVE

What has been paramount to Caramello's success?

The fact that the business is well established with12

years of operational success. The Founders &

Franchisors still involved today and being very hands-

on with the day-to-day operations makes it a very

powerful brand with strong capacity as a Franchise,

creating great opportunities for potential Franchisees.

Furthermore the success of Caramello's can be

attributed to the current & continued strong

foundation of well established and profitable stores.

We have an exclusive Frozen Retail Offering with a FTO

(Frozen to Oven) in-store baking process ensuring

100% availability of baked goods with a quality

guarantee a 100% of the time, currently a unparalleled

product offering in the market.

We pride ourselves in the fact that our initial investment

required by a potential owner operator for a new store

is approximately 50% less than that of our peers

without compromising our store setup or quality of

product. This, in itself, reduces the period required to

retrieve ones initial capital outlay and increases return

on investment. The on-going franchise fees are

extremely well positioned at 6% royalty and a 3%

marketing fee contribution.

Our central kitchen and distribution centre allows us to

supply all confectionery, specialized bakery products,

coffee supply and recipe items to our exclusive store

network, ensuring we remain exclusive, very

responsive to quality, price, changing markets and

keeping product innovation as part of our DNA.

The Greatest Challenge most Franchisors face

including ourselves is identifying and securing good

locations, with good terms & conditions and rates,

thereafter it is identifying a good owner operator and

brand custodian to champion a new outlet.

Our unique menu offers great variety, ranging from

breakfasts to gourmet burgers; from espresso's to

coffee cocktails. We continuously strive to remain price

and product conscious without neglecting quality and

profits. One of our unique selling propositions is our

Deli section, where we provide quality confectionery,

bakery and catering platters for events.

Passionate

Driven

Hands-on operator

Desire for growth

Desire for profits

Commitment towards excellence & service

What challenges do you face at present?

How has your franchise model worked in favour of

Caramello's?

What are some of the attributes required from

franchisees?

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How would you describe the overall relationship

between Caramello'sand its franchisees?

What kind of training and support can franchisees

expect?

Which factors are paramount for sustained future

growth within Caramello'swith specific reference to

its present and future franchisees?

We are very hands-on in our relationship with our

franchisees and believe that to be a successful

Franchise each stakeholder within the brand should be

treated as a partner in the business. We believe a

healthy relationship between Franchisor & Franchisee

is built on a foundation of strong communication and

as a result we greatly encourage and place high value

upon Franchisee feedback, suggestions & overall

communication.

We are very hands on with support to our franchisees

and require all our owner operators to undergo a two

month in-store training program prior opening their

business.

There is also a hand holding period once the business

opens, thereafter we are just a phone call away besides

our regular store visits and follow ups.

It is critical that every store that opens has a passionate,

well trained, driven, hands-on operator that will

champion their business daily.

Where to from here and into the future?

THE FRANCHISEE'S PERSPECTIVE

What questions should prospective franchisees ask

themselves before buying a franchise?

We have gained great interest for our brand nationally

and even internationally and our aim to grow into a

National Brand . Our short term objective is to award a

minimum of 3 franchise outlets during 2014. We

believe this is possible due to our current & continued

strong foundation of well established & profitable

stores, strong systems & procedures and hands-on

Franchising approach.

We are also very excited for the launch of our new niche

market offering whereby frozen deli & confectionery

items will be retailed directly to walk-in customers

whilst providing (FTO) Freezer to Oven deli &

confectionery items to our coffee shop clientele. Details

and a virtual store tour are available on our website.

It is very important for a potential franchisee to do their

due diligence regarding the Franchisor company from

every aspect. Ensuring that they visit & interview other

successful franchisees is a paramount part of this due

diligence process and may not be neglected, to

mention but one of the many important procedures

that require attention prior making any kind of

investment decision.

What made you decide to buy a franchise?

How important is it to investigate a franchise and

what criteria did you use?

What made you buy aCaramello's franchise?

I wanted to buy a proven business model with

established systems & procedures, for which I was

willing to pay a monthly premium. After carefully

conducting my various due diligence processes and

finding the right franchise that matched my skill set and

capital capacity, the return on investment & overall

probability of success were automatically elevated &

realized.

As mentioned previously LESS IS NOT MORE in this

process and it is important to investigate every aspect

and question everything upfront. Once you have

concluded the necessary agreements there is no more

room for negotiation or unrealistic expectations.

They are a relatively young franchise but a well

established business, who were very transparent from

the beginning. This in itself presented a great

opportunity. There systems & procedures, current

brand loyalty & track record attracted me even more. To

date I can say I have not been disappointed & my

expectations have been surpassed.

What early challenges did you face?

What training and support does the Franchisor

provide you with?

How important is the Franchisee's relationship with

the Franchisor?

Initially Human Resources (HR) was a challenge for me

with a larger staff turnover than I had anticipated, but

once I found my feet it was mere “run of the mill”

challenges that were overcome relatively easily with the

training and ongoing support received from the

Franchisor.

The Franchisor required me a two month in-store

training program prior opening my franchise.

Thereafter they have been very hands on and

supportive.

Extremely, there can be no success if there is a

breakdown or lack of relationship between Franchisee

& Franchisor. I must admit that Caramello's has

welcomed and pursued relationship with me from the

onset, something I am very thankful for and did not

easily find when investigating other Franchise

opportunities.

What advice would you give to prospective

franchisees?

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Do your homework thoroughly before entering into

agreements.

Understand your strengths & weaknesses and

match them to a Franchise Opportunity.

If it looks too good to be true, it usually is.

Any Franchisor promising you a fast or easy return

on your money not accompanied with hard work is

lying to you.

Be very clear & understand WHY you want to

purchase a specific Franchise opportunity.

QUICK FACTS

Contact person: Shaun Coetzer

Tel: +27 51 430 6042 / +27 82 502 7260

Email: info@caramellos.co.za

Website: www.caramellos.co.za

ABOUT

NETWORK DETAILS

FINANCIAL STATISTICS

FRANCHISE AGREEMENT TERMS

Founders

First franchise opened

Average monthly store turnover

Management services fee

Year founded

Number of South African outlets

Achievable gross margins

Marketing fee

Average setup cost (incl. joining fee and working capital)

Initial agreement term

Initial franchise fee

Renewal term

Minimum owner's contribution percentage (excl. loans)

Area of origin

CEO

The Ioannides brothers

2013

R315 000

6%

2002

4

63%

3%

R1 400 000

5 years

R130 000

5 years

50%

Bloemfontein, Free State, South Africa

Rodos Ioannides

FOR MORE INFORMATION

Telephone: 051 430 6042 | Email: info@caramellos.co.za | Website: www.caramellos.co.za